Morgan Stanley Set to Purchase Superior Funding Methods & Wealth Administration Options Supplier Eaton Vance

Morgan Stanley (NYSE: MS) introduced on Thursday it’s set to accumulate Eaton Vance, a complicated funding methods and wealth administration options supplier with greater than $500 billion in property underneath administration (AUM), for an fairness worth of roughly $7 billion. Morgan Stanley reported that the acquisition advances its strategic transformation with three world-class companies of scale: Institutional Securities, Wealth Administration, and Funding Administration.

“A pacesetter in value-add mounted earnings options, Eaton Vance fills product gaps and delivers high quality scale to the MSIM franchise. The mix will even improve consumer alternatives, by bringing Eaton Vance’s main U.S. retail distribution along with MSIM’s worldwide distribution.”

Whereas sharing extra particulars concerning the acquisition,  James P. Gorman, Chairman and CEO of Morgan Stanley, said:

“This transaction additional advances our strategic transformation by persevering with so as to add extra fee-based revenues to enhance our world-class funding banking and institutional securities franchise. With the addition of Eaton Vance, Morgan Stanley will oversee $4.Four trillion of consumer property and AUM throughout its Wealth Administration and Funding Administration segments.”

Morgan Stanley then added that underneath the phrases of the merger settlement, Eaton Vance shareholders will obtain $28.25 per share in money and 0.5833x of Morgan Stanley frequent inventory, representing a complete consideration of roughly $56.50 per share. Based mostly on the $56.50 per share, the combination consideration paid to holders of Eaton Vance’s frequent inventory will consist of roughly 50% money and 50% Morgan Stanley frequent inventory.